Islamabad, Engro Fertilizer Limited (EFERT) reported earnings of PkR10.8 billion for the first quarter of 2024, with earnings per share (EPS) of PkR8.1. This marks a slight decrease from the previous quarter's earnings of PkR11.1 billion (EPS: PkR8.3), yet the results exceeded market expectations due to unexpectedly strong gross margins.

According to AKD Securities Limited, EFERT's total revenue for the quarter was PkR73.8 billion, down 1.8% from PkR75.2 billion in the fourth quarter of 2023. This decrease was primarily due to a 29% quarterly decline in DAP (Diammonium Phosphate) sales. Despite a contraction in gross margins from 38.7% to 30.5%, driven mainly by the sales of imported urea at higher rates and an increase in gas prices, the margins remained above expectations. This resilience is attributed to a favorable product mix featuring higher-margin specialty fertilizers and better-than-expected margins on DAP sales.

Further financial details reveal a significant reduction in operating expenses, which fell by 19.3% to PkR5.5 billion due to lower distribution costs amidst decreased sales volumes. However, other income saw a decline of 29.1% to PkR1.3 billion, likely impacted by lower returns from short-term investments. Finance costs decreased by 41% to PkR160 million, reflecting a reduction in total borrowings, with the company’s debt dropping to PkR6.5 billion at the end of December 2024, down from PkR9.6 billion in September 2023. Additionally, the company announced a first interim dividend of PkR8.0 per share.